Investing in the U.S. Military's Worst-Kept Secret
The worst-kept secret in the military is its massive energy consumption.
This isn’t a new revelation by any stretch of the imagination.
And it turns out that energy, dear reader, is also its greatest weakness.
We’ve known for a long time that the Department of Defense is one of the single-largest energy-consuming bodies in the world.
In fact, our military is one of the most dependable oil customers on the planet.
The situation has undeniably improved, but keep in mind where it was a decade ago…
Back in 2007, only THREE countries consumed more oil per capita than the United States’ Department of Defense. That year, it used well over 100 million barrels and accounted for 93% of the government’s fuel consumption.
Oh yes, that was an improvement!
In 1985, the military’s oil demand was nearly 180 million barrels.
So when the top brass decided to make energy reduction a major priority, it was almost too easy for individual investors like us to see where things were headed.
Let’s be honest here: Transitioning to renewables and alternative fuels was probably the quickest decision they’ve had to make.
Keep in mind that in 2009, the military was paying around $400 per gallon of fuel for its vehicles and aircraft in Afghanistan!
Ever wonder why military spending seems to increase every year?
Like I said, this isn’t a huge secret.
Now, I’d like to give you three guesses as to the direction it's going, but you’re only going to need one.
Investing in the Military’s Worst-Kept Secret
Hydrogen may very well turn into the army’s fuel of choice in short order.
That makes some sense give that hydrogen is the most abundant element on Earth, right?
Some insiders are already referring to it as the holy grail of energy production.
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The future for hydrogen also turned much brighter after General Motors helped develop the Chevrolet ZH2 truck, which is powered by hydrogen fuel cells.
Honestly, it’s not half-bad looking, either:
Could this be the transition the military needs?
It’s certainly shaping up that way.
Think about it…
Filling up its fuel tank with compressed hydrogen gas will allow the vehicle to move far more silently than its gasoline-driven counterparts, and it even has a projected range of up to 400 miles.
Of course, that’s not to mention that this sucker will allow soldiers to create fuel wherever they end up. They can use JP-8 (a jet fuel used frequently by the military) and convert it right into the necessary fuel.
It also doesn’t mention the fact that the exhaust can turn into drinking water for soldiers.
That’ll come in handy considering that temperatures in Afghanistan during the summer can reach as high as 120°F.
And yet, this opportunity also extends far beyond the military…
Many of the world’s largest automakers are already selling these hydrogen fuel cell vehicles on the market today.
But again, this is something we’ve known about for a while now.
Finding those tiny investment gems, however, is an entirely different story altogether.
And in the coming weeks, I’ll give you the ticker of one that is proving to be a game changer for our military’s exorbitant energy consumption.
Until next time,
A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.
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